Pennsylvania House panel OKs pension plan switch in 2015

A state House panel has endorsed legislation to switch Pennsylvania's major public pension systems to 401(k)-style plan for new hires.

An all-Republican majority on the State Government Committee voted Tuesday to push two bills to the House floor over the objections of Democrats who say it's unfair to state and school employees.

Gov. Tom Corbett originally proposed cutting future benefits of hundreds of thousands of state employees and educators and replacing the current conventional pension plans in 2015. Legislative committees in the Senate and now in the House have embraced only the 401(k)-style change in pension plans for newly hired employees.

The House and Senate measures differ in detail and the financial implications of both are unclear. The Public Employee Retirement Commission is scheduled to review the legislation Tuesday afternoon.